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The year 2020 has been a nightmare so far on all fronts. While it has been devastating for the manufacturing industry, the picture of the consulting industry is not healthier either. The tax consulting industry is facing a number of stiff challenges – ranging from tax reforms to take steps to safeguard clients’ interest in the face of the global pandemic triggered off by the COVID 19 Virus. But the virus is not the only challenge that has rocked the British business shores! There are other challenges as well!! IR35 is one of them!
Indeed, the UK tax consulting firms are taking a string of measures to deal with this twin menace of IR35 and COVID 19 pandemic to safeguard their clients’ interests. Dynamic Project Advisory Ltd is no exception. Our professional tax consultants are going beyond their ways to tackle the situation. Here is a sneak peek into the issue.
What is IR35?
IR35 or Intermediaries Legislation 35 is a bunch of tax laws, which are a part of the Finance Act. It is used to describe two separate sets of tax legislation and is specifically designed to counter the propensity of tax avoidance of the employees, and the firms they are working for. If caught under IR35, it will have a significant impact on these employees, and they will be considered ‘deemed’ by Her Majesty’s Revenue and Customs (HMRC). It will reduce the net income of the worker by 25% and will cost the company they are working for, a hefty amount in the form of additional income tax and NICs.
Thus, to safeguard their clients and to help them comply with this law, our tax consultants in London provide them able guidance:
They would help evaluate the IR35 status of their clients
With the help of tools and technologies, they would carefully scrutinize the working practices of their clients, to determine the IR35 status.
They Will Carefully Review the Contracts
They will review the contracts as well as the working arrangements of their clients in a more detailed and expansive way. They will also try and negotiate the changes on behalf of their clients. This service can be availed via an online test on https://www.ir35shield.co.uk/ as well, though taking the help of the professional experts in this regard is always a much safer and wiser step.
Negotiating Changes
They would carefully scrutinize the contract of their clients to find whether it precisely reflects the working arrangements. Passing the IR35 is not a simple paper exercise so that it can be passed in a whimper. If the contact fails to reflect the working practices accurately, it will be considered a sham by the HMRC and actions will be taken. Thus, it is the responsibility of the providers of accounting services in London to analyze the contract intricately and negotiate it, if needed, for IR35 compliance. That is exactly what our professionals at Dynamic Project Advisory Ltd would do for our clients.
Confirming the Arrangements Documents
We advise our clients to sign in a written document, which confirms the arrangements. This will go down as much stronger evidence than a contract and will act as an astounding defence, should the HMRC raise any issue subsequently.
Helping the Clients to Align Working Practice With the Contract
Having mere paperwork in place will not be enough. The working practices have to be in line with the contract. Our experts would ensure that the working practices of our clients adhere strictly to the contract document and any other confirmation of arrangements.
Thus you see, we at Dynamic Project Advisory Ltd have a definite guideline in place to help our clients comply with IR35. To avail our assistance in this regard and for further details, call us at 02077151945 between hour business hours.